THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression lnY = β₀ + β₁ lnX₁ + β₂ lnX₂ + β₃X₃ + ε was used,where Y is the annual income (in thousands of dollars) ,X₁ is the adult's age,X₂ is his/her years of education,and X₃ is a dummy
variable = 1 and is used if the adult is female.You run the regression and obtain the equation
ln
= 6.3 + 0.91 lnx₁ + 1.3 ln x₂ - 0.05x₃.
-How would you interpret the coefficient on age?

A) As the person's age increases,their income increases at a decreasing rate.
B) As the person's age increases,their income increases at an increasing rate.
C) As the person's age increases,their income at first increases,then eventually decreases.
D) As the person's age increases,their income at first decreases,then eventually increases.